Ahead of Yellen's Testimony a Look at 10-Year Yield vs Gold

As we head towards Tuesday's Fed Chair testimony on Capitol Hill, let's notice that 10-year Yield has reversed from pushing up against key near-term resistance at 2.14% towards a test of key near-term support at 2.05%, which if violated and sustained, should trigger downside follow-through into my optimal-target support zone of 2.00% to 1.95%-- prior to my expectation of the start of a new upleg.

Meanwhile, if all of the near-term digestion/corrective action in Yield off of its Feb 18 high at 2.16% was expected to elicit an opposite reaction from spot Gold (based on the inverse relationship since the start of 2015), well, this time is a bit different: Gold has carved out a sideways range at best since Feb 18.

That said, however, the intraday action off of today's low at $1191.10 exhibits constructive form so far.

As long as $1191.10 remains a viable low, my bias is for the emergence of strength later today that challenges today's intraday high at $1210.68-- heading into "Testimony Tuesday."

Share: Analysis feed

In using any portion of MPTrader, you agree to the Terms and Conditions governing the use of the service as described in this disclaimer. Our disclaimers, policies and terms are subject to change without notice. MPTrader (www.mptrader.com) is published by AdviceTrade, Inc. and MJP Market Strategies, Inc., both of whom are publishers. The Web site is maintained by Codexia, LLC and has a marketing affiliation with The Technical Trader. None of these firms or individuals is registered as a broker-dealer or investment adviser either with the U.S. Securities and Exchange Commission or with any state securities authority. Mr. Paulenoff's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Paulenoff's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions and Mr. Paulenoff and employees of AdviceTrade do not have personal positions in instruments mentioned on the site. Hypothetical performance results do not include trading commissions and other execution costs that would be incurred if the trades referenced in the diary or elsewhere on the site were actual trades. Past performance is no guarantee of future results. MJP Market Strategies, AdviceTrade, and Codexia cannot and do not assess, verify or guarantee the suitability or profitability of any particular investment. The risk of loss in trading index futures can be substantial. You should therefore carefully consider whether such trading is suitablef or you in light of your financial condition. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment. As an express condition of using this service and anytime after ending the service, you agree not to hold any employees of MJP Market Strategies, AdviceTrade, or Codexia or the companies themselves liable for trading losses, lost profits or other damages resulting from your use of information in MPTrader in any form (Web-based, email-based, or downloadable software), and you agree to indemnify and hold MJP Market Strategies, AdviceTrade, and Codexia and their employees harmless from and against any and all claims, losses, liabilities, costs, and expenses (including but not limited to attorneys' fees) arising from your violation of this agreement. This paragraph is not intended to limit rights available to you or to us that may be available under the federal securities laws.